Governance systems for organisations: governance information control system design and development methodology for NGO boards: executive summary

Abstract

This submission reviews and examines the responsibility and role of non-executive directors in reinforcing the self-governance systems for non-government organisations (NGO). Corporate governance is an issue of great concern at Government and commercial levels and a prime topic in the media due to scandals at Enron, WorldCom, the British Museum, Tyco, and at a host of smaller organisations. This research explored the contributory systems and processes towards enterprise governance and provided new insight into how the boards of directors of NGOs can develop and be in a position to amend the parameters for their own information systems for self-governance. Unless these NGOs can govern themselves properly, their boards may eventually lose their mandate. The governance of NGOs is difficult because of the voluntary and part-time nature of directorship, a lack of information support system, and a comparatively lower level of transparency. Schools, hospitals, productivity councils, universities, social welfare institutions would be representatives of such NGOs. The research has used Hong Kong as the test base at a time when NGOs are given more authority and ownership for self-governance. A series of action-based case studies undertaken are summarised and 'used to identify the control components and processes leading to higher levels of self governance. These together with an extensive literature survey on corporate governance and on the development of governance information systems (GOVIS) were used to develop a new' process methodology for designing and developing governance information system for NGOs. Known as GISDER, the methodology links Rochart's Critical Success Factors (Rochart, 1979), cybernetics (Capra, 1997), systems thinking (Beer, 1985; Jackson, 2000), and adult learning (Ackof, 1999) concepts with control components unique to the organisation under review. The relevant control components for a particular NGO are identified from fifteen base components. Elements of the process methodology have been further tested in some NGOs. A thorough evaluation discussion and thoughts on the applicability of the derived methodology for other types of organisations have been provided. It is concluded that self-governance for NGO boards cannot be assumed and that the components for a GO VIS for self-governance can best be developed and evaluated through the GISDER methodology. The methodology is now at the core of a consultancy offering for NGOs in the Greater China region

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Last time updated on 28/06/2012

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